Advocacy

As geopolitical dynamics continue to influence global industries, the semiconductor sector finds itself at a pivotal crossroad. During the SEMI Industry Strategy Symposium (ISS Europe) held in Sopot, Poland, a high-level panel on the Geopolitics of Semiconductors brought together leaders from across the ecosystem to explore Europe’s role in an increasingly fragmented world shaped by strategic dependencies and evolving alliances.Moderated by Stefano Ramundo Orlando, Advocacy Manager at SEMI Europe, the panel convened industry executives, strategic advisors, and policy experts for a forward-looking dialogue on the challenges and opportunities shaping Europe’s semiconductor future.The session opened by acknowledging the rapidly changing geopolitical landscape and its impact on the global semiconductor supply chain. Export controls, investment screening mechanisms, and economic security strategies are no longer abstract policy discussions — they are reshaping investment decisions, manufacturing strategies, and even workforce planning across the globe. While these disruptions present undeniable challenges, panellists underscore that they also mark a pivotal opportunity. For Europe, this is not a moment to retreat but a call to adapt with purpose.Closing the Gaps: Building on Europe’s Strategic AdvantagesGiulietta Poltronieri, Partner at McKinsey Company, mapped out Europe’s strategic position in the global value chain. While Europe boasts global leadership in intellectual property (IP), lithography, and research and development (R D), key gaps remain in foundry capabilities and backend manufacturing. The solution lies not only in plugging these gaps but in securing Europe’s existing strengths — a balancing act between resilience and competitiveness.Giulietta Poltronieri, Partner, McKinsey Company’s Global Semiconductor PracticeMalcolm Penn, Founder CEO of Future Horizons, echoed this sentiment and emphasized that success in semiconductors requires long-term vision and a global mindset. Penn argued that Europe must look beyond its local market, citing Taiwan’s TSMC as a model of how small domestic markets need not constrain global leadership, “The excuse of having no end market in Europe is just an excuse.” Europe, Penn contended, must have the courage to think big and act boldly.Malcolm Penn, Founder Chief Executive Officer, Future Horizons Corporate Strategy Amid UncertaintyHendrik Bourgeois, Vice President of European Government Affairs at Intel, offered insight into how geopolitical risk has become an embedded factor in corporate strategy. Intel’s decision to expand manufacturing in both the U.S. and Europe was directly influenced by a recognition of over-reliance on certain global regions.Bourgeois stressed that while business can adapt to restrictive policy, uncertainty remains the greatest challenge to long-term decision-making. Consistency, trust, and engagement with governments are crucial — and businesses must invest in building political capital just as they do in infrastructure or talent.Hendrik Bourgeois, Vice President, European Government Affairs, Intel China: Partner, Competitor, and Geopolitical PuzzleBoris Metodiev, Director at TechInsights offered a balanced view of China’s role — acknowledging it as both a vital market and a strategic competitor. With nearly 40% of global semiconductor demand and significant state backing, China presents both irresistible opportunity and real systemic risks.Key concerns include technology transfer, the impact of heavy subsidization, and growing market concentration. Addressing these issues, Metodiev suggested, will require a balanced approach focused on diversifying supply chains, protecting intellectual property, and reinforcing trade enforcement — all while maintaining open channels for cooperation and avoiding the pitfalls of full decoupling.Boris Metodiev, Director, Manufacturing Analysis, TechInsights Talent: The Silent BottleneckPanellists identified talent shortages as one of the most yet under-discussed threats to Europe’s semiconductor future. Europe lacks the scale of skilled STEM graduates to meet current and projected demand.Companies like Intel are investing heavily in partnerships with universities and training institutions. However, regulatory obstacles — especially for intra-European mobility of non-EU nationals — remain significant. The call to action was clear: Europe must rethink migration and education policy through the lens of economic strategy, not just under traditional policy frameworks, aligning policy with industrial goals and scaling efforts to match future workforce needs.Central and Eastern Europe: Emerging Pillars of European StrategyThe panel explored how Central and Eastern Europe are increasingly integral to Europe’s semiconductor strategy. Mikołaj Trunin, Deputy Director at Invest in Pomerania, noted that despite geopolitical headwinds, the region continues to attract strong foreign direct investment (FDI). Poland has emerged as a trusted investment destination and a budding semiconductor hub, with Pomerania positioned as a key region for advanced packaging.With nations like Poland taking on higher political and industrial profiles—such as upcoming leadership of the EU Council— the region is positioned to serve as a strategic bridge between Europe’s industrial core and frontier markets. This momentum underscores the importance of embedding these regions more fully into the broader semiconductor ecosystem.Mikołaj Trunin, Deputy Director, Invest in Pomerania A Call for Coordinated ActionThe panel concluded on a note of clarity: geopolitical disruption is not a temporary deviation, but a defining characteristic of the coming industrial era. With semiconductors positioned at the intersection of technology, security, and sovereignty, Europe must act decisively. Companies must continue to evolve, engage politically, and remain agile. To ensure long-term competitiveness and resilience, policymakers and industry leaders must work hand in hand to shape an integrated European semiconductor ecosystem. The stakes are high — but so is the potential.SEMI ContactIranda Chaki, Senior Policy CoordinatorEmail: [email protected]

Semiconductors are the foundation of all electronics and information technology that drive our modern world.

SEMI and the SEMI PFAS working group members have strengthened their advocacy efforts concerning policies governing the use of per- and polyfluoroalkyl substances (PFAS).

Last week, more than a dozen senior semiconductor executives traveled to Washington, DC for the first-ever Fall Washington Forum. The SEMI Washington Forum, a venue for SEMI members to educate lawmakers about the industry, focused on action against China, both in the form of tariffs and export controls.Our industry is global, and companies rely heavily on trade. In 2017, more than 90 percent of equipment made in the United States was exported. Because of this dynamic, the United States holds a nearly $9 billion trade surplus in this industry. SEMI supports trade policies that open foreign markets. In the meetings, the executives expressed deep concern that the tariffs would inflict deep damage to the U.S. economy, including to SEMI members. Estimates suggest that the Sec. 301 tariffs (and the Chinese retaliatory tariffs) will cost semiconductor companies more than $700 million annually, dramatically increasing the cost of doing business. These tariffs also threaten U.S. technological leadership. The United States has led innovation for decades. However, by pursuing policies that limit market access opportunities, company-led R D and innovation will slow, which, in turn, will curb further export potential. SEMI companies also stressed that because of the blunt application of these tariffs, this action will actually hurt U.S. companies as much as it hurts their Chinese competitors. Indeed, about 40 percent of imports in our sector from China are from U.S. or other non-Chinese companies. Further, the semiconductor industry relies on a vast network of supply chains, which have been built and qualified over the course of years. A fundamental revamp of supply chains is simply not feasible. This would be expensive, time-consuming, and resource-intensive. With a growing number of policy issues that are central to and could have significant impact for semiconductor companies, SEMI hosted its first ever Fall Washington Forum for members of its North American Advisory Board (NAAB). SEMI also invited several other industry executives. In total, 14 senior industry executives, including representatives from equipment manufacturers, component suppliers, and materials providers, attended the Fall ForumDuring the two days of meetings, SEMI met with several senior Administration officials to better the policies being enacted and considered as well as encourage all parties to not impose barriers to commerce, which would severely impact the semiconductor industry. SEMI also met with Members of Congress and their staffs on this issue. All told, attendees at the Fall Forum had more than 15 meetings with policymakers, reflecting the great impact of public policy on SEMI members companies. At a time when the stakes for the industry could not be higher, direct engagement with lawmakers is critical. The Washington Forum offers an incredible opportunity for members to better understand the impact of key public policy issues and gain firsthand experience in influencing policy and helping lawmakers better understand the industry.If you are interested in learning more about the SEMI Washington Forum or SEMI’s public policy program, please contact Jay Chittooran by email at [email protected].

Just as the annual Cherry Blossom festival wraps up, international trade has flowered as a top concern for SEMI members, requiring immediate action as 20 SEMI member executives carried the torch for the industry in recent meetings with lawmakers at the annual SEMI Washington Forum. The business leaders quickly zeroed in on the proposed Sec. 301 tariffs of 25 percent on China imports to the U.S. and their potential to drive sharp increases in the cost of doing business. In the meetings at the two-day event in Washington, D.C., the executives expressed deep concern that the tariffs, aimed at protecting the interests of U.S. companies, would instead harm the intended beneficiaries including SEMI members around the globe. The executives also focused on the proposed 232 tariffs on steel and aluminum that would compound the damage to their businesses, spiking costs of materials that lie at the heart of their manufacturing operations. Also crucial to their business interests, the SEMI members educated lawmakers on the talent shortage and the intense competition to fill open positions across the supply chain. With fully 77 percent of industry executives seeing talent shortfalls as a pressing business issue, the business leaders pushed for legislation that would bring more domestic talent into the STEM education pipeline – such as S. 1518, The CHANCE in Tech Act to support more apprenticeships in technology, and H.R. 4023, the Developing Tomorrow’s Engineering and Technical Workforce Act to get more students involved in engineering. The group also encouraged support of the “Immigration Innovation” or “I-Squared” bill to strengthen and expand the H1-B visa program and STEM Greencards. The SEMI Washington Forum, a venue for SEMI members to educate lawmakers about the industry, also addressed concerns over restrictions on foreign investment in the U.S. Passage of S. 2098, the Foreign Investment Risk Review Modernization Act (FIRRMA), would usher in new operating efficiencies for the Committee for Foreign Investment in the United States (CFIUS) by adding much-needed resources to the overburdened body. However, the bill would also subject many ordinary business transactions to a lengthy and costly national security review that would hamper the ability of many companies to do business in the global marketplace. All told, attendees at the forum held more than 30 meetings with lawmakers, reflecting the great impact of public policy on SEMI members companies. In a time when the stakes for the industry have risen to new levels, direct engagement with lawmakers in the nation’s capital by SEMI and its members is critical. The SEMI Washington Forum is a terrific way for members to more clearly understand the impact of key pieces of legislation and gain firsthand experience in influencing policy and helping lawmakers better understand the industry. If you are interested in learning more about the SEMI Washington Forum or SEMI’s public policy program, please contact Jamie Girard by email at [email protected].

SEMI and 106 other associations today joined forces to express deep concern to congressional leaders about the Trump Administration’s decision to use tariffs to address China’s unfair trade practices. In a letter from the collective to House Ways and Means Committee Chairman Kevin Brady and Ranking Member Richard Neal ahead of today’s hearing on "Effects of Tariff Increases on the U.S. Economy and Jobs," we expressed our strong support to better protect valuable intellectual property, the crown jewel of our industry.However, we worry that these tariffs will hurt companies in the semiconductor supply chain, introduce significant uncertainty, impose greater costs, open companies to retaliatory tariffs, and ultimately do nothing to address our concerns regarding China’s trade practices. We strongly encourage Congress to work together and with the Trump administration to jointly develop and execute a plan that will address the longstanding problems with China. As part of the SEMI Washington Forum (April 17-18), SEMI staff and senior executives from across the industry will raise this and other issues with policymakers in Washington, DC. SEMI will continue to engage as trade tensions continue.